On August 15, 2024, the quiet halls of the Waukesha County Circuit Court hummed with anticipation as Honorable Michael Aprahmian took a seat at the bench. Representatives of Derrick J. Hammetter and Antoinette M. Vinkavich stood patiently awaiting the results of Verisma Systems’ settlement hearing.
What would have been a normal summer afternoon for most residents in Waukesha transformed into a watershed moment for the entire Wisconsin healthcare industry. The court ruled that Verisma Systems will pay a total of $4.9 million dollars in excessive fee settlements to individuals and entities that the company has billed for health records since 2011.
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Origins of Hammetter v. Verisma Systems, Inc.
Verisma Systems is a prominent release of information company tailored to large and small healthcare practices. In April 2023, it merged its business with ScanStat, another inbound record management vendor specializing in ambulatory services and physician groups.
Derrick J. Hammetter and Antoinette M. Vinkavich retained attorneys at Wisconsin law firm Cannon and Dunphy to help them obtain their medical records for two separate personal injury investigations.
Trouble began when Cannon attorneys contacted Froedtert Hospital to retrieve copies of their clients’ records. According to the class action complaint, Verisma Systems — on behalf of its partner Froedtert — charged Cannon and Dunphy an $8 certification charge on top of a $20 record retrieval fee. The attorneys then passed the bill back to Hammetter and Vinkavich as part of their client-attorney reimbursement obligations.
Both Hammetter and Vinkavich filed against Verisma, claiming that the company sought “unjust enrichment” in violation of WIS. STAT. § 146.83(3f). The situation intensified for Verisma as the plaintiffs pushed for a class action on behalf of themselves and other patients and entities that experienced similar violations.
Additionally, Froedtert Hospital entered the lawsuit as a defendant when plaintiffs accused them of being “vicariously liable for the acts of its authorized agent, Verisma.”
What Does Wisconsin Law Say?
Wisconsin has nuanced laws and regulations regarding fees for the release of medical records. For instance, hospitals and their respective vendors cannot charge patients or authorized representatives for the release of electronic medical records. Price caps also govern the release of physical copies.
In the case of Hammetter v. Verisma Systems, Inc., the defendants appealed to the “good faith” defense in WIS. STAT. § 146.84(1)(a) — claiming no liability under the circumstance that they released the records responsibility, with no intention of harm to patients. However, legal scholars point out that the issue is not whether Verisma Systems caused harm as a result of releasing records but rather that they charged excessive fees for them.
Froedtert attempted to lessen the severity of the class action by arguing WIS. STAT. § 893.93(2)(a) barred many of the involved class members from seeking compensation following a two-year statute of limitations. The Court of Appeals in Wisconsin disagreed with this motion.
The Final Settlement
Despite the hard-fought legal battle between all parties, Verisma Systems eventually agreed to settle the case by issuing portions of a $4.9 million payout to each class member with a completed Valid Claim. Court records state the following individuals and entities may be eligible for compensation if:
- The defendants invoiced them for medical records between the dates July 1, 2011, and November 30, 2015. These individuals and entities may receive settlements paid equal to 4.5x the certification and retrieval fees paid.
- The defendants invoiced them for medical records between the dates December 1, 2015, and May 3, 2017. These individuals and entities may receive settlements paid equal to the certification and retrieval fees paid.
- The defendants invoiced them for dates on and after May 4, 2017. These individuals and entities may receive settlements paid equal to 6.25x the certification and retrieval fees paid.
Why This Case Matters: Wisconsin Healthcare Practices
Hammetter v. Verisma Systems, Inc. proves that Wisconsin laws related to record release fees are complex and often confusing for both small and enterprise-level healthcare providers. When partnering with a release of information vendor, courts can hold your business liable for any mistakes or assumptions these third parties make on your behalf.
Partnering with a legally compliant and secure service will ensure you don’t experience costly lawsuits related to excessive charges or kickback fees.
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